Chevron proposes contract extension of three blocks within IDD

Chevron Indonesian Company has officially made a proposal for the extension of production sharing contracts of three gas blocks within the so-called Indonesia Deepwater Development (IDD) project including Makassar Strait Block, Rapak Block, and Ganal Block in the East Kalimantan, Bisnis Indonesia reported on Tuesday.

This was said by Ausie B. Gautama, Deputy for Planning Control at the upstream oil and gas authority SKK Migas, during a hearing with the House of Representatives Commission VII on energy on Monday. He said that the extension of the contract is requirement to help ensure economic feasibility of the IDD project.

While failed to provide details, Ausie added that Chevron has also made revisions related to investment, increase in reserves, and expansion of fields within the three blocks.

Meanwhile, I Gusti Nyoman Wiratmadja, Acting Director General of Oil and Gas, confirmed that Chevron has sought for the contract extension in a letter dated November 7, 2014 to SKK Migas.

The Makassar Strait Block contract will expire in 2020, Rapak Block in 2027, and Ganal Block in 2028. (*)